Chorus Aviation has lower Q1 net income, to change quarterly dividend to monthly

HALIFAX – Chorus Aviation Inc. (TSX:CHR.B) is reporting a lower net profit of $5.6 million, or five cents per share, but says it had higher operating income helped by cost cutting.

That compares with $9.1 million, or seven cents per share, in the same quarter last year.

Operating income was $31.2 million, up from $20.8 million year-over-year.

The Halifax-based airline also says it plans to change its shareholder dividend from quarterly to monthly in the third quarter.

Operating revenues were $414.5 million, down from $416.2 million year-over-year.

Adjusted net profit was up at $20.3 million, or 17 cents per share, from $14.7 million, or 12 cents per share, in the same period in 2013.

“Our solid operational performance and our cost reduction initiatives generated strong operating income and cash flows from operations,” said president and CEO Joseph Randell said in a news release on Thursday.

“Returns from our cost reduction efforts, including our continuing investment in voluntary employee severance programs, are to the benefit of all our stakeholders,” Randell said.